Sage Book Company is evaluating the two
Question # 00467330
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Updated on: 01/20/2017 07:29 AM Due on: 01/20/2017
Sage Book Company is evaluating the two investments shown below. Each will require an initial investment of $50,000 The cost of capital is 13% and the cash flows are as follows:
Year Book Binder Printing Shop
1 $10,000 $4000
2 $5000 $8000
3 $15,000 $10,000
4 $5000 $30,000
5 $20,000 $40,000
Question - Which investment would you select using the net present value method? Please show your work
Year Book Binder Printing Shop
1 $10,000 $4000
2 $5000 $8000
3 $15,000 $10,000
4 $5000 $30,000
5 $20,000 $40,000
Question - Which investment would you select using the net present value method? Please show your work
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Solution: Sage Book Company is evaluating the two